The Australian share market has closed modestly higher in the wake of a positive lead from US markets, highlighted by the announcement of an $11.3 billion merger between gambling giants Tabcorp and Tatts Group.
CMC Markets chief market analyst Ric Spooner said trading on the local bourse on Wednesday was mundane.
“”We’re just following the overseas lead – that’s what essentially has happened today,” Mr Spooner said.
He said investors were encouraged by better-than-expected company earnings reports in the US.
Mr Spooner said Chinese economic figures released on Wednesday had contained no surprises, which was positive but had no major impact on the market.
The data showed that the world’s second-largest economy grew by 6.7 per cent in the three months ending in September compared with a year earlier.
Tabcorp and Tatts said on Wednesday that they are merging into a single $11.3 billion gaming giant that will be able to take on overseas competitors, both at home and abroad.
Tatts shares soared 57 cents, or 15.9 per cent, to $4.16, and Tabcorp jumped 17 cents, or 3.5 per cent, to $5.06.
Elsewhere in the gaming sector, shares in Crown Resorts fell to a 10-month low, dropping 34 cents, or three per cent, to $11.00.
Crown shares fell nearly 14 per cent on Monday in the wake of the detention of 18 of its employees in China, recovered a little on Tuesday, but were lower again today.
Rival casino operators The Star Entertainment Group and SkyCity were down 2.2 per cent and 2.9 per cent respectively.
In the resources sector, global miner BHP Billiton slipped 17 cents to $22.47. BHP reaffirmed its full-year production guidance across all its segments, other than copper, as it sees early signs of a recovery in the commodities markets.
Rio Tinto was up 13 cents at $50.74.
Origin Energy dipped five cents to $5.62 despite the oil and gas producer and energy retailer saying it is on track to deliver its twin targets of an increase in full-year earnings and a reduction in debt.
Among the major banks, ANZ, Commonwealth Bank and National Australia Bank were marginally higher, but Westpac was a touch lower.
Construction firm and contract miner CIMIC improved 71 cents to $28.40. Adolfo Valderas has taken over as the new chief executive of CIMIC, which is on track to deliver a full-year net profit of at least $520 million.
KEY FACTS:
* At 1637 AEDT, the S&P ASX/200 index was up 24.6 points, or 0.45 per cent, at 5,435.4 points.
* The broader All Ordinaries index was up 26.4 points, or 0.48 per cent, at 5,518.4 points.
* The December share price index futures contract was up 15 points at 5,406 points, with 25,484 contracts traded.
* National turnover was 2.48 billion securities traded, worth $5.27 billion.